After Your Discharge?

[krp]

My husband and I filed chpt 7 and received our discharge. Now I gave the trustee and my lawyer some info on a family trust that I had, but I never followed up with tax records on that trust. (I did intend to, but we moved and things got hectic, and next thing I knew I got the discharge.) My family has now decided to disolve this trust and I will be receiving a rather large amount of money. I assume this is going to raise a huge red flag to our trustee, but how, when and what should I do? Ideally, we are going to use some of the money to repair our cars, invest in 529's for our kids and establish savings and investment plans.

I would also REALLY like to keep the fact that we filed a secret from my family. They know we had some financial problems, but not to what extent. I would appreciate anyone's advice.

[freshstarter]

Is your case still open or is it closed?

[krp]

Well, I just found this site and so I just now checked Pacer. (I had never heard of it before) According to them the last filing was on 8/6/05, and on 8/4/05 it was Discharged, under status is says Awaiting Closing.

I don't want to do anything illegal, but at the same time it sure would be a blessing to put this behind us and be able to move on. Now I feel like I am looking over my shoulder all over again.

[freshstarter]

Might your family be willing to wait til your case is closed if you told them?.... Though I don't really know if that would help since I suppose they can reopen your case. I just think it may be less likely they would reopen once its closed.

[Minnymouth]

WORD OF CAUTION,
Your case can be re-opened up to one year after the case is closed.
If this is a substancial amount of money involved, the trustee can check 6 months from now and see you have received it....so best not try to "hide" anything.
I would suggest you tell family members the situation and hold off doing anything with these funds for a while if possible.
Trustee can reopen and take it all to pay creditors......I believe.....
Just like and inheritance.....or lottery win......

HHM might be able to explain this better for you......

Or Todd....

Minny

[Minnymouth]

I notice in your posting you said the Trustee knows about this Trust already...............
Do yourself a favor, leave this alone for a while if possible....
Don't rock the boat.......
Could possible look like "fraud"??
Now that you have your discharge you want to inherit a trust fund????

Looks bad!!! Looks like money was put in a Trust Fund to protect it and now that you have been "discharged" you want to take it out and use it and invest it.

Maybe somebody else can help with some input on this subject.

Minny

[krp]

The thing is this is something I didn't think would happen for another 25 years or so. I have never received any income from this account, and didn't expect to until we retired. The account had been set up approx 10 years ago. There isn't much I can do about it now, I have several siblings and parents who are making this decision.

On one hand, I wouldn't mind paying my creditors, I just hate all the interest and finance fees that we would probably face now. If I had known I was going to get this money, I would have made settlement offers in the first place. I just didn't know if I should contact the trustee myself, or wait and see if they re-open my case. I am unclear on how they track this sort of thing.